Business Loans Without Collateral

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Business Loans Without Collateral

A loan is an indispensable component of a business. Though assets against loan protect the lender, every borrower prefers to go for an unsecured business loan. Such unsecured business loans are available without collateral. A collateral free business loan is a provision that allows the borrowers to acquire a loan without pledging property or other assets. The lender approves the loan application based on the borrower’s credit score. Are you wondering how a collateral free business loan can help you to expand your business? Here is everything you need to know about business loans without collateral.


How to Apply for a Collateral Free Business Loan?

You can approach the lender for a small business loan without collateral to meet your business goals. Application for an unsecured business loan is available in online mode. Here is a step-by-step procedure for applying for small business loans without collateral.

  • Applicants need to check the eligibility criteria for business loan before filling up the form. 
  • You would need to calculate your business loan EMI.
  • Arrange the necessary documents you would need for a collateral free business loan. It includes personal and business KYC, address proof, and banking details of the last six months.
  • You can take advantage of collateral free business loans online. It takes only 10 minutes to fill up the online form.
  • Upload the necessary documents based on the requirements of your application form. 
  • Allow a few minutes for credit analysis and evaluation of the application forms and documents.
  • The lender would approve the loan and transfer the funds to your account.

Benefits of Taking Business Loan From FlexiLoans

Usually, acquiring business loans for young entrepreneurs is challenging and exhausting. Applying for a loan is a time-taking process and can require several documents in support. However, FlexiLoans has come to their rescue by providing them with encouraging means to obtain business loans. 

  • It takes less time than the conventional loan-applying method.
  • You need minimal documentation. 
  • The lender approves the loan within 48 hours.
  • The borrower enjoys the easy availability of funds.
  • You need to pay the interest rate only on the money you withdraw.
  • The interest rate is comparatively lower than other small business loans.
  • A flexible repayment facility makes paying back the borrowed-sum less burdensome.
  • The borrower has the liberty to withdraw money without restriction within the stipulated limit.
  • You can apply for a collateral free business loan online at your convenience.


Best Offers For A Business Loan Without Collateral?

Entrepreneurs can acquire business loans without collateral through the following offerings suitable for their business. However, borrowers should exercise caution while applying for collateral free business loans. They should approach only authorized and trusted funding agencies to enjoy the benefits of an unsecured business loan. FlexiLoans, term loans, loans against POS, line of credit, and vendor financing offer business loans without collateral. Below are the diverse features of a collateral free business loan.

  • Term Loan

The term loan is the most appropriate form of financing for a small business establishment. The borrower can receive up to Rs. 1 crore loan amount with a flexible monthly repayment frequency. The borrower gets loan tenure for 24 months. 

  • Loan Against POS

Loan against POS or Point of sale is suitable for retailers accepting digital payments. Repayment becomes less burdensome as monthly EMIs are eliminated in this form of financing. The vendor can repay the loan daily via mobile wallet or POS terminal. The borrower receives loan tenure between 3 to 24 months.

  • Line of Credit

Line of credit is the most feasible for business owners with seasonal products and services. It serves your unforeseen liquidity requirements when there is a surge of demand. The borrower can apply for an unsecured business loan for an amount up to Rs. 1 crore with flexible repayment frequency. The loan tenure ranges from 3 to 24 months.

  • Vendor Financing

Vendor financing is the most viable option for large corporate suppliers. It works best for borrowers who have long-outstanding dues. However, vendor financing enables business owners to expand business with a collateral free business loan. They receive a loan amount up to Rs. 2.5 crores with up to 12 months of facility tenure. The borrower can enjoy a loan tenure of 30 to 120 days against the invoice.


Basic Eligibility Criteria

Minimum Business Vintage 1 year
Monthly Business Sales Minimum 2,00,000

Documents Required for Collateral Free Business Loan

Personal KYC PAN card
Residential Address Proof (Any One) Rent Agreement | Driving License | Voter's ID | Ration Card | Passport | Aadhar Card
Banking Last 6 months current account bank statements
Business KYC (Any One) GST Registration Certificate | Shops & Establishment Certificate | Business PAN Card

Frequently asked questions

What are the purposes for which I can get a loan via FlexiLoans?

FlexiLoans is here to provide you financial access for your business funding needs. You have to undergo simple and transparent Credit Evaluation, basic documentation before we disburse the loan. You may get loans via FlexiLoans for:
  • Expanding your business
  • Servicing regular working capital needs
  • Managing seasonal working capital requirements
  • Manage short term cash flow gaps

Why should I avail loan via FlexiLoans?

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

What documents are required to apply for a loan?

KYC document

  • - Pan card

Proof of residential address (any one)

  • - Rent Agreement
  • - Driving License
  • - Voter's ID
  • - Ration Card
  • - Passport

Banking

  • - Last 6 months of bank statement of current account

Business KYC (any one)

  • - GST Registration Certificate
  • - Shop Establishment Certificate

Financial documents (For loans greater than 20 Lakhs)

  • - 2 years Audited financials
  • - Last 2yrs ITR
  • - GST Returns of 6 months

Are there any charges other than interest rate that I have to pay to avail the loan?

We may charge processing fee to facilitate the loan towards legal and documentation charges. You may be charged penal charges for late or irregular payment behavior.

Can I get a business loan without collateral?

Yes, FlexiLoans provide a collateral free business loan.

How is the interest rate calculated on a business loan?

  • Business Loan interest rate is calculated basis- E = P * r * (1+r)^n / ((1+r)^n-1).
  • Here, P signifies principal loan amount, r signifies the interest rate, n stands for tenor in months and E signifies the EMI amount.
  • You can use the FlexiLoans EMI Calculator to check the interest payable, EMI amount and more.

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

We may charge processing fee to facilitate the loan towards legal and documentation charges.

Interest rates start at as low as 1% per month. However, it may depend on various factors like your loan amount, tenure, eligibility, etc.